High interest charged on motorbikes has continued to hinder economic empowerment and indepedence of young people.
However, this might be a thing of past as Nakuru Town East Parliamentary aspirant Wakili Boniface Githinji Ndumia has vowed to address the same.
Speaking on Wednesday when he met Bodaboda riders at Barnabas centre, Wakili Ndumia noted that the financial institutions have continued to exploit youth in bodaboda industry rendering them vulnerable.
He added that it is so unfortunate that the huge interests charged on the motorbikes is unlawful.
According to him, when elected MP Nakuru Town East Constituency, he will ensure a bill towards addressing the same.
While citing the Donde Bill that sought to regulate the same, Wakili Ndumia was categorical that the interest charged on the loan for mortorbikes should not exceed the Principal charged.
He added that it is is even worrying that youth are struggling to pay the loans and when they are about to finish, the motorbikes are stolen by cartels.
It should be noted that the “Donde Bill” refers to a series of legislative efforts in Kenya, that were spearheaded by former Gem MP Joe Donde, primarily aimed at capping commercial bank interest rates and regulating lending to protect borrowers from high charges.
Though initially passed in 2000 but later declared unconstitutional, its spirit led to the Banking (Amendment)The “Donde Bill” refers to a series of legislative efforts in Kenya, spearheaded by former Gem MP Joe Donde, primarily aimed at capping commercial bank interest rates and regulating lending to protect borrowers from high charges.
Though initially passed in 2000 but later declared unconstitutional, its spirit led to the Banking (Amendment) Act, 2016, introducing the in duplum rule, preventing accrued interest from exceeding the principal.
The core aim was to set limits on how much banks could charge for loans.
It faced strong opposition from banks and financial institutions who argued it would harm the sector.
While the original bill faced setbacks, its principles influenced later laws, notably the Banking (Amendment) Act, 2016, which established the in duplum rule.
It aimed to shield Kenyans from exploitative lending practices.
